UAE must create energy policy, experts warn

Delegates at a two-day workshop in the capital said the UAE needed a national body and 'smart grid' to cut costs and consumption in the future.

The UAE needs a comprehensive energy policy if it wants to reduce consumption, say experts.

A two-day workshop in the capital recently discussed the county's energy needs, as well as ways to improve efficiency through technology.

Hosted by the Masdar Institute of Science and Technology in collaboration with the Swiss university Ecole Polytechnique Federale de Lausanne (EPFL), the event was attended by policy-makers, suppliers, academics and professionals from the local and international energy sectors.

Sgouris Sgouridis, an associate professor of engineering systems and management at Masdar, said the UAE needs a body similar to the Dubai Supreme Council of Energy to handle a nation-wide energy policy.

"We need a high-level strategy for the nation to direct the energy portfolio in a more optimal way," he said.

The workshop was organised to "bring everyone to the table", but the real difference, he said, would be made if things were "formalised under a ministry".

Prof Sgouridis said that one of the biggest challenges was getting stakeholders - including the government, regulators, utility suppliers, sellers and consumers - to work together towards a common goal.

He said each group perceives costs differently depending on which technology they are using and the financial incentives.

Matthias Finger, a professor of network industries management at EPFL, said it was important to have "all the actors on board" to be able to make a change.

"It's about the link between institutions and who needs to do what, so that technologies can be deployed to their fullest potential," he said.

Prof Finger said that it was vital for people to be able to understand how much energy they consume.

Prof Sgouridis said "smart grids" - which use digital technology to gather information about the behaviour of suppliers and consumers to help improve eenergy efficiency, distribution and consumption - can do that by creating a "two-way communication".

It gives people instant information about how much energy they are consuming in real-time and the option to cut consumption in peak hours.

The technology also works in the home, where washing machines can be programmed to run only at night, when energy is cheaper.

Prof Finger said there are "many things you don't need to use at 6pm in the evening; it's just because we're used to it".

The challenge, he said, was to find mutual financial incentives for all the stakeholders if energy consumption is to be reduced.

"Utilities want to sell as much energy as possible, so you need to develop a business model that makes it attractive to save energy," said Prof Finger.

Bruce Smith, a business adviser for the Abu Dhabi Water and Electricity Authority, said there must be a "very clear" objective for the government to invest in a smart grid system.

He said that just giving consumers access to information about how much they consume was not enough, as human behavior was difficult to change. "The key is giving them the ability to do something about it, so they can react to the information," he said.

Osman Ahmed, head of the Siemens Centre of Excellence for Smart Buildings, said bringing in a fully operational smart grid system could be easier in the UAE as there are fewer layers of Government.

"The structure is more simplified here, " Mr Ahmed said.

Prof Finger said the UAE has the money and resources to make it work, adding: "It's such a new country, which can be an advantage in many ways. You can build from scratch and do it right."